News

30 May 2016

HLH launches phase two of Cambodian project

Singapore-listed HLH Group has launched phase two of its maiden mixed-use development in Cambodia, after the first phase was sold out.

A total of 437 units were released in the latest phase of the D’Seaview project in Sihanoukville, with one- to three-bedroom units on offer.

The waterfront development was first launched in September 2015. All 300 apartments released under phase one were snapped up by local and international buyers, with prices ranging from US$675 psm (S$922 psm) to US$1,943 psm (S$2,653 psm).

“The strong response to our project reflects the pent-up demand for good quality affordable housing in Cambodia. Given the country’s positive GDP growth of about six percent to seven percent annually, the Cambodian economy remains vibrant and attractive to both local and foreign investors,” said HLH Group CEO Dato Dr Johnny Ong.

“In view of this and the rising tourist numbers in Sihanoukville as well as the increasing disposable incomes of consumers in Cambodia, our plans for more developments will add greater vibrancy and activities to the area,” he added.

D’Seaview is a mixed-use development located near the popular Sokha Beach in Sihanoukville, which is expected to become Cambodia’s next hotspot, not only for property investments, but also for tourism. Aside from its potential as a major cruise ship destination, there are also more flights landing at the city’s international airport.

Piling work is currently underway and is expected to be completed by June this year. The apartments are being marketed under the CAMHOMES brand of HLH, which is targeting the mass market.

Looking ahead, the group plans to build more residential projects in other locations, including the capital Phnom Penh.

Picture Source: 437 units of D’Seaview in Sihanoukville have been released for sale.
Source copied: http://www.propertyguru.com.sg/property-management-news/2016/3/120254/hlh-launches-phase-two-of-cambodian-project

Singapore’s housing market among the weakest: Knight Frank

Prices of private residential properties in Singapore continued their downward trend, falling by 3.6 percent in the fourth quarter of 2015 from the previous year, according to Knight Frank’s latest Global House Price Index.

On a quarterly basis, prices slipped by 0.2 percent from Q3 2015. Singapore was ranked 51st out of the 55 housing markets tracked by Knight Frank, which puts it among the weakest performers, Ukraine and Greece.

Between 2009 and 2011, prices of private units surged by 62.2 percent, but have dropped by 8.41 percent since then.

Analysts believe that a number of factors will continue to put pressure on the property market, such as the large pipeline supply of units, weakening demand amid low economic growth, and the market cooling measures which remain in place.

Meanwhile, the world’s housing markets recorded three percent growth on average in 2015. Turkey leads the rankings with prices ending the year 18 percent higher, said Knight Frank.

The consultancy added that its outlook for the year is muted. “We expect the index’s overall rate of growth to be weaker in 2016 than 2015. The global economy is experiencing a potentially dangerous cocktail of low oil prices, a strong dollar and a continued slowdown in China,” said Kate Everett-Allen, Head of International Residential Research at Knight Frank.

Picture Source: Singapore sits close to the Ukraine and Greece as having one of the world’s weakest housing markets.
Source copied: http://www.propertyguru.com.sg/property-management-news/2016/3/120027/singapores-housing-market-among-the-weakest-knight-frank

South Beach wins top design award

South Beach, Singapore’s biggest mixed-use development, has won the only Platinum SG Mark, presented at this year’s Design Business Chamber Singapore (DBCS) SG Mark awards.

Jointly developed by City Developments Limited (CDL) and Malaysian-based IOI Properties, the new project at Beach Road was built on a 3.5ha plot, and took eight years to complete. It faced design challenges that involved incorporating four conserved buildings with modern structures.

Several of the project’s green features impressed the judges, including a 280-metre long canopy that converts solar energy to electricity and collects rainwater to irrigate South Beach’s landscaping, as well as sky gardens which act as ‘green lungs’.

It is estimated that South Beach can save up to 17 million KWh of energy and 174,000 cubic metres of water annually.

“We believe that many of the principles behind this iconic building can be applied to future buildings to improve urban sustainability and overall aesthetic and practical appeal,” said Tai Lee Siang, President of the DBCS.

Several other local developments picked up SG Mark Gold Awards, namely the JTC Space @ Tuas development and the Singapore University of Technology and Design campus in Changi.

In total, 32 organisations picked up awards this year. Started in 2013, the SG Mark Awards are considered the Oscars of the design industry here. Previous winners include Gardens by the Bay, Botanic Gardens and Changi Airport.

Picture Source: South Beach was the big winner at the SG Mark 2016 awards. (Photo: Christopher Chitty)
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Malaysia’s property market has hit bottom, says developer

Home sales in Malaysia are expected to recover in the second half of 2016, said Mah Sing Group, the country’s third largest property developer by sales.

“We have reached the bottom of the downturn, and it will recover in the medium term,” as Mah Sing is witnessing signs of renewed confidence from home buyers, despite the negative reports on the weak ringgit, and allegations of corruption, said Group Managing Director Leong Hoy Kum.

“The bad news like 1MDB and the ringgit have already been digested; I don’t see anymore bad news coming out. It is back to work for everyone, to focus on economic growth.”

The ringgit has also strengthened 3.8 percent, making it Asia’s third best-performing currency.

Meanwhile, Mah Sing is set to hit its RM2.3 billion sales target for this year. The developer is confident it can sell more “medium range to high-end properties” in 2017, especially in Kuala Lumpur.

Meanwhile, its competitors are also posting strong sales. Earlier this month, Eco World Development Group found buyers for 85 percent of the units at its apartment outside the capital. Moreover, nearly all of the 341 units at a project by Sime Darby were snapped up in one day.

Given the turnaround, Mah Sing is now looking to acquire more land parcels with its record net worth of RM1.4 billion (S$467 million). It wants to replenish its land bank after holding back on such acquisitions in 2015.

“Every weekend is shopping time for me and sometimes, I charter a helicopter to look at land of 500 acres to 1,000 acres,” added Leong.

Picture Source: Mah Sing Group believes that Malaysia’s property sector will recover soon.
Source copied: http://www.propertyguru.com.sg/property-management-news/2016/3/119981/malaysias-property-market-has-hit-bottom-says-developer

Top property agents earn 66% more than average Singaporean

The median gross monthly commission earned by the top 300 property agents at ERA Realty Network hit $11,686 in 2015, according to latest statistics released by the property agency.

This is 66 percent more than the median gross monthly income of full-time employees in Singapore, which averaged $3,949 last year, based on data from the Ministry of Manpower.

These 300 agents are aged 23 to 65, with four of them above 60 years old, earning more than $133,876 annually despite being of retirement age, noted ERA.

At just 28, property agent Kavin Kuah, who joined ERA in 2012, has earned a median monthly gross commission of $119,873.

“Real estate is a good career path if you are someone who looks forward to no-ceiling income. There are always opportunities around; it’s all about commitment, passion and perseverance,” he said.

Jack Chua, ERA’s CEO, said the company remains resilient, despite the current market downturn and changes in real estate regulations.

“Media channels are reporting that many property agents quit the industry in 2015. However, statistics prove that the performance of (the) property sector is positive.

“Many individuals are lured by factors such as high salaries and work-life balance. However, selling properties has never been a simple sales job. It is a long-term, viable career that requires constant upgrading,” added Chua.

ERA remains the biggest agency in Singapore, even after its agent pool dropped by 6.6 percent to 5,947 agents in the October-to-December licence renewal period.

To further help its agents, ERA has rolled out a series of initiatives and policies, such as more professional development and market-focus programmes, as well as welfare and benefit schemes to encourage greater work motivation.

Picture Source: Real estate agents still command some of the highest-income jobs in Singapore despite challenging market conditions.
Source copied: http://www.propertyguru.com.sg/property-management-news/2016/3/119908/top-property-agents-earn-66-more-than-average-singaporean

Expats still paying top dollar for historic bungalows

Sales of black-and-white bungalows, a type of good class bungalow (GCB), are few and far between given their limited number, reported The Wall Street Journal.

Designed after the mock-Tudor architectural style, these houses come with whitewashed exteriors that contrast with black-stained timber details. To make them more suitable for the tropics, they feature broad verandas, wide eaves and tall shutters for shade, as well as masonry piers to elevate the structure and alleviate humidity.

According to historian and academic Julian Davison, these homes combine the ‘Tudorbethan’ style of Victorian England and the colonial-bungalow style introduced in Singapore by the British Raj in India.

These properties are favoured by expatriates due to the luxurious lifestyle they offer and their large area, which start from about 2,000 sq ft for one-storey bungalows to around 8,500 sq ft to 11,000 sq ft for the more exclusive villas.

“They are the perfect answer for people looking for a bit of greenery and some space,” said Diana Chua, a Singapore guide.

However, sales are rare as only a few are privately owned, and these include most of the 100 black-and-white bungalows slated for conservation by the Urban Redevelopment Authority (URA).

The majority are currently being rented out by the Singapore government. Over 90 percent of the 500 units managed by the Singapore Land Authority (SLA) are leased as homes, while some are used for commercial purposes. JTC Corporation also oversees around 150 units at the Seletar and Buona Vista industrial parks.

In addition, rents of black-and-white bungalows declined from their peak in 2010 to 2012, following the introduction of property cooling measures. For instance, monthly rents for the 33 bungalows at Mount Pleasant range from $8,600 to $23,500, said Ascott Ltd, the property manager.

Picture Source: Black and white bungalows offer a luxurious lifestyle.
Source copied: http://www.propertyguru.com.sg/property-management-news/2016/3/119930/expats-still-paying-top-dollar-for-historic-bungalows